Boise Cascade and Cross Country Healthcare have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – July 13, 2023 – Zacks Equity Research shares Boise Cascade BCC as the Bull of the Day and Cross Country Healthcare CCRN as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Dell Technologies DELL, HP Inc. HPQ and Apple AAPL.
Here is a synopsis of all five stocks:
Bull of the Day:
Boise Cascade is a Zacks Rank #1 (Buy) and it sports an A for Value and a B for Growth. This stock has been on a big rise since it last reported in early May. That earnings report was a big beat and led to higher earnings estimates. Let's explore more about this company in this Bull of The Day article.
Description
Boise Cascade Company engages in manufacture of wood products and distribution of building materials in the United States and Canada. It operates through two segments, Wood Products and Building Materials Distribution. The company sells its products to dealers, home improvement centers, and specialty distributors. The company was incorporated in 2004 and is headquartered in Boise, Idaho.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For Boise Cascade, I see three beats Zacks Consensus Estimate and one miss over the last calendar year. That is great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).
Last quarter saw EPS of $2.43 when $1.81 was expected. The $0.62 difference works out to be a 34% positive earnings surprise.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher.
Over the last 60 days, earning estimates have increased for BCC.
This quarter has seen a move from $2.26 to $2.54.
Next quarter has moved from $2.61 to $2.65.
The full year numbers are certainly more important... and they are moving higher as well.
This year has moved from $8.66 to $8.93.
Next year is now up to $8.42, moving up from $7.37.
Valuation
When I first look at valuation, I go right to the forward PE. For BCC I see a 10.5x level which is just about half the 20.6x industry average. The price to book multiple of 1.7x is well below the 7.6x industry average as well. Finally we have a 0.5x price to sales multiple which is significantly lower than the 4x industry average. The valuation comparison to the industry average alone makes BCC worth a deeper look.
Bear of the Day:
Cross Country Healthcare is a Zacks Rank #5 (Strong Sell) and has seen earnings estimates slide lower recently. This stock was added to the Stocks Under $10 service that I manage back in November of 2020 and was removed in July of 2022 for a 221% gain. Imagine my surprise to see it as a Zacks Rank #5 (Strong Sell) after I had been a strong advocate for the name for nearly two years!
This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Cross Country Healthcare, Inc. provides talent management and other consultative services for healthcare clients in the United States. The company operates in two segments, Nurse and Allied Staffing, and Physician Staffing. It serves various healthcare facilities, such as acute and non-acute care facilities, medical group practices, government facilities, and managed care organizations. The company was founded in 1986 and is headquartered in Boca Raton, Florida.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of CCRN, I see four straight beats of the Zacks Consensus Estimate. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn't make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For CCRN I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $2.66 to $2.56 over the last 60 days.
The next year has moved from $2.73 to $2.55 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Potential Legislation
Investors who are looking to the longer term should do a little more research in the space. There are whispers that in the future that legislation will require a minimum number of nurses at a given hospital or healthcare facility. The details are still yet to be hammered out, but a new law like that could be a long term tailwind for CCRN.
Additional content:
Q2 PC Shipment Data Showing Signs of Stabilizing
The decline in global personal computer (PC) shipments continues for the seventh consecutive quarter, according to the latest data compiled by Gartner. Per the preliminary data released by the market research firm, PC shipments in the April-June 2023 quarter plunged 16.6% year over year to 59.7 million units.
However, the second-quarter PC shipment data shows a strong improvement from the first quarter when PC vendors had shipped 55.2 million units. The research firm sees the sequential improvement in PC shipments as an initial sign of stabilization in the PC market.
Mikako Kitagawa, Director Analyst at Gartner, stated that "The rate of decline in the PC market has slowed, indicating that shipment volumes may have reached their lowest point." She further added, "There has been progress in reducing PC inventory after more than a year of issues, supported by a gradual increase in business PC demand. Gartner expects that PC inventory will normalize by the end of 2023, and PC demand will return to growth starting in 2024."
Industry 5YR % Return
In 2020 and 2021, PC manufacturers had benefited from the increased demand amid the pandemic-induced remote-working and online-learning wave. The pandemic necessitated using PC systems for remote work, web-based learning, video conferencing, video gaming, social media, consumer entertainment and streaming or online shopping.
However, the back-to-back seven quarters of declining PC shipments depict an end to the industry's demand boom. We believe that consumers have become more cautious about their spending due to inflationary pressure, rising interest rates and fears of a possible recession. Furthermore, enterprises are delaying their large IT spending amid macroeconomic challenges.
Per the data compiled by Gartner, all top vendors registered a decline in their PC shipments in the second quarter. Dell Technologies registered the highest fall of 21.8% to 10.4 million units, followed by Acer 21.1% to 4 million PCs.
HP Inc. and Apple both registered a modest decline in their PC shipments. While HP's PC shipments fell 0.9% to 13.5 million units, Apple's shipments dropped 0.3% to 5.3 million PCs.
Per Gartner, Lenovo continues to hold the top spot on the vendor list, followed by HP and Dell with a market share of 24%, 22.5% and 17.4%, respectively. Apple, Acer and ASUS ended the April-June quarter with a market share of 8.9%, 6.7% and 6.5%, respectively.
Among the leading vendors, Dell carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Meanwhile, Apple and HP Inc. each have a Zacks Rank #3 (Hold). Lenovo carries a Zacks Rank #4 (Sell).
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
HP Inc. (HPQ) : Free Stock Analysis Report
Dell Technologies Inc. (DELL) : Free Stock Analysis Report
Cross Country Healthcare, Inc. (CCRN) : Free Stock Analysis Report
Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report
